CCEP: Set 3
A CEO has an affair with the head of one of the business units. The affair is only known by a
few people in the company. A plant manager has an affair with a plant employee, and the
affair becomes public. The plant management is fired and complains that the CEO should
also be fired. The compliance and ethics professional should
A. Recommended that discipline is consistent
B. Review the harassment policy
C. Terminate the CEO
D. Rehire the plant manager - correct answer-A. Recommended that discipline is consistent
A colleague notices an employee is illegally taking credit card details from customers of the
company. Compliance and ethics policy should encourage the colleagues to report the
incident to
A. The supervisor
B. Finance
C. The police
D. The credit card company - correct answer-A. The supervisor
A company has been informed of an upcoming external investigation, resulting from an
employee complaint. The compliance and ethics professional (CEP) learns that the
employee had conducted his own inspection and found several violations. Which of the
following should the CEP do FIRST?
A. Self-report these violations to the regulatory agency
B. Mark the employee's inspection results "attorney-client privilege"
C. Destroy the documentation from the employee's inspection
D. Remind the employee of the duty to seek guidance when issues arise - correct answer-A.
Self-report these violations to the regulatory agency
A company recently hires its first compliance and ethics professional(CEP). The company is
considering reporting potential import/export violations. The compliance program is almost
non-existent and severely understaffed, but a risk assessment has been done. Which of the
following should the CEP do NEXT?
A. Discuss resources with the CFO
B. Develop a compliance work plan
C. Revise the import/export compliance policies
D. Delegate to HR and legal to correct violations - correct answer-B. Develop a compliance
work plan
A company's senior executives, including the compliance and ethics professional (CEP), are
discussing a new incentive program for sales staff. Which of the following should the CEP do
next?
A. Recommend no incentive program for sales staff.
B. Defer the evaluation to sales and marketing
C. Conduct a review for potential risk issues.
, D. Perform a cost-benefit analysis. - correct answer-C. Conduct a review for potential risk
issues.
A compliance and ethics professional (CEP) directly reports to the compliance and audit
committee of the board with an indirect report to the CEO. The predominant expertise of the
new board members is in finance, and they have recommended that the compliance budget
for training, external audits, and legal expense be reduced significantly. Which of the
following is the BEST response by the CEP?
A. Request reconsideration of the reduction
B. Reformulate the budget to present at the next board meeting.
C. Educate the board on their oversight responsibility.
D. Accept the recommendation by the board - correct answer-C. Educate the board on their
oversight responsibility.
A compliance and ethics professional (CEP) has been contacted by a plant manager
regarding possible safety violations. The violations are similar to the violations organizations
had in its most recent safety inspection. The CEP has reviewed the corrective action plan
submitted to regulatory enforcement and determined that if the corrective action plan has
been properly implemented, the violations should not be occurring. Which of the following
actions should the CEP do NEXT?
A. Meet with the business unit leader to discuss the issue
B. Implement the corrective action plan
C. Recommend disciplinary action for the manager
D. Prepare a report to the regulator regarding the new violations - correct answer-D. Prepare
a report to the regulator regarding the new violations
A compliance and ethics professional (CEP) has been contacted by plant manager regarding
possible safety violations. The violations are similar to the organization has in its most recent
safety inspection. The CEP has reviewed the corrective action plan submitted to regulatory
enforcement and determined that if the corrective action plan has been properly
implemented, the violations should not be occurring. Which of the following actions should
the CEP do NEXT?
A. Meet with the business unit leader to discuss the issue.
B. Implement the corrective action plan
C. Recommend disciplinary action for the manager
D. Prepare a report to the regulator regarding the new violations - correct answer-B.
Implement the corrective action plan
A compliance and ethics professional (CEP) receives a call from an employee in the finance
department who is concerned that the company is not complying with document destruction
requirements. Which of the following is the CEP's BEST response to the inquiry?
A. Require the finance department top destroy all records immediately
B. Inform the employee the issue will be reviewed as the time permits
C. Discuss the document destruction practices with the director of finance
D. Ask the employee to identify the law that was violated - correct answer-C. Discuss the
document destruction practices with the director of finance
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